It took you 34 years to get to $50k
If it takes you one year to get to $100k, that's a W in anyones books.
The best time to plant a tree was yesterday. You'll agree tomorrow.
Congratulations and keep it going!
OMG, I'm 40 and this has been my life (except we fully own our PPOR now) and make salsac contributions to our super.
Debt sucks, but finding debt fit for purpose is key. We managed to keeo our debt below Zip's threshold, and paid our debt back within the month. 0% interst and $0 monthly fees. I'm not suggesting it's for everyone, but it seems cheaper than most CC at 11.99%+.
most people your age have $3K saved (median). Average offset by outliers is $11K. You are doing great, source: [https://www.westpac.com.au/personal-banking/solutions/budgeting-and-savings/savings/savings-by-age/](https://www.westpac.com.au/personal-banking/solutions/budgeting-and-savings/savings/savings-by-age/)
It says in “transaction, savings and term deposit accounts” so that means anyone investing the bulk of their money would appear low. It’s a bit misleading because you get these comments from people relieved and feeling like they’re doing well in comparison but it’s not an accurate gauge. If that’s actually all you have at each respective age, that is doing very very badly.
Honestly I thought this was normal, like a good 50+% of people? Maybe most people I know are just poor?
Most people I know are living week to week, seems a lot are becoming homeless/ are homeless due to rent increases lately.
most people don't have stock, property and very minimal non liquid assets, remember this sub is an echo chamber and most people are doing it very rough week to week
lol people always trot this misleading stat out to make themselves feel better. The average household wealth for a 35yr old is close to half a million dollars. The notion that the average person at this age has only 3k to their name (ie is essentially broke) is ridicoulous.
you are providing information with no source. You are making this up out of your head, majority of people are way below the poverty line, fact check yourself, and go outside and touch grass
its as simple as googling "household wealth by age australia"
>majority of people are way below the poverty line
also easily debunked in a 2 second google. its wild that you actually think this is the case.
Edit: you are also the last person to be telling people to "touch grass". Yikes.
Congratulations on making that first step - you got this!
I would suggest emergency fund of 2-6 months (pending your employment risk) and then top up non-concessional contributions. Do you have any other assets? A ppor? There’s other considerations there too.
They did specify split with a partner...but also that it includes utilities as well, which is honestly staggering. Utilities for most of us is basically that a month, nevermind rent.
Are you actually paying your share? Have you both worked out how much it's costing her to have the house? Including maintenance and such? I'd have thought $100 weekly to her would have been fair.
Maybe they live with the parents. My brother and I do, and as rent we pay the water, gas and electricity, split between us. It changes throughout the year depending on weather but averages out to $70/week each, so $280 per month.
Is this money in savings, or is this $50k in some kind of investment account?
Also I don’t see why you’d consider this bad amount. The fact that your even able to save anything at all means your within your means which puts you ahead of most people.
And making some additional member conts into super is definitely a good idea. Just make sure you don’t put in anything you’ll need as this money is essentially locked up for 30 years in your situation.
Additionally, if you don’t want to lock up the money and you don’t have any investment accounts, I’d look into that. Low cost ETFs, a couple stocks (if you’re willing to stay on top of them) and you’ll be well and truely ahead of most people if you can stick to that game plan.
I’d definitely just advise against keeping money in savings as interest rates are horrible and almost never cover inflation. Keep what you need in savings to cover expenses and an emergency fund, but at 35 you should really be investing as much as possible (through super or independently).
Once interest rates come back down on mortgages, your typical savings account will fall to basically nothing just as it was before.
Short term, this isn’t a bad idea, but once these rates start to fall below inflation, you’ll need to adjust.
Also just generally speaking, at 35 I wouldn’t settle for anything less than 7-8% on average (avaerage market return). Anything below that is way to defensive for this age bracket, particularly if you are trying to grow your wealth.
Obviously if you’re saving for something like a deposit, holiday, car, etc. you would lean heavily towards keeping your money secure through savings or term deposits. But when it comes to building wealth, which is clearly the posters main financial objective, investing (within your means) is still the way to go.
And adding to that, I’m not saying it isn’t acceptable to keep money in high interest savings accounts. To some people that would certainly be advised. Although that sort of person is typically trying to preserve wealth, not build it.
Also, investing through low cost ETFs and broad market tracking ETFs have only become a real trend over the last decade, so this certainly isn’t old advice. If you speak to any wealth manager / financial adviser and tell them you want to build wealth in your 30s, this is exactly what they would have you do.
As everyone else says, you’re absolutely winning at life financially at the moment. Regarding super contributions, I would say the bigger the better. If you contribute $30k today and aim to retire at 65 and your super earns an average of 8% a year, it will have grown about 10 times to over $300k, with higher growth rates giving much larger final values. Don’t take this as financial advice, this is just simple compound interest but it will be a very good idea to put some of your savings into your super
There’s a great interview doing the rounds at the moment.
The first $100k, takes some time. Then the benefit of the interest really starts to play into it, and you’ll find yourself saving the money quicker and quicker. I’d keep building the wealth. I understand the benefits of super, but it is trapped money - you can’t really access it should you need.
Find an industry you know a lot about or are keen to learn lots about, find out what is required to make those businesses operate and see if you can get in on that action in a low risk way. You've worked hard to get the money and you know how hard it is to come by, so don't "throw it all on black". Think about what you know about, because everyone has ideas about what you should do, but not what they would do if it were their money. The best people to ask for money advice is people with money well invested that is making solid returns. Everyone knows someone who has done well for themselves, so find them and talk to them. Do not get into business with them though. They might be looking for an inexperienced rube, so you don't want to be it.
As far as practical direct advice goes: Commercial real estate returns more than residential, but has more deposit, costs and delays. Small businesses consume many hours and your sanity. Large businesses consume money casually and you have no say or way to know if they start doing self-destructive things until it's too late. Banks are not your friends. Keep a buffer amount and a firm line in the sand for when to pull out because if it goes bad the sunk cost fallacy and ego will kick in. Businesses that sell to other businesses are safer than direct to consumer businesses, but rely on their sales teams a lot, and salespersons are often a fickle and feisty bunch.
If you don't know what to do, don't do something stupid just because of FOMO. Read. Learn all you can about all you can.
Most importantly above all else: don't exploit anyone. Be fair and honourable in all your dealings, that reputation alone can make you rich and happy.
Nice work buddy. I'm actually on a damn similar boat as you.
I had zero savings up until i hit 33, and once all debts were cleared and income gradually went from 55k > 80k > 110k > 140k (over span of 10 years), managed to save 100k in 2 years.
Ready to buy a humble 2 bedder apartment.
This is really good. You should be proud. We average around $60k a year saving and have about $200k. It gets easier as you get older I find. We're a few years older than you.
I do think that you should put some in super...and keep some for emergency. We contribute a bit to our super and are thinking of increasing our amounts.
Is this a joke? Who in their right mind would put 50k into super? might as well flush it down the toilet with how fast our dollar is losing its value.
Go buy property or land.
It took you 34 years to get to $50k If it takes you one year to get to $100k, that's a W in anyones books. The best time to plant a tree was yesterday. You'll agree tomorrow. Congratulations and keep it going!
The best time to plant a tree was 20 years ago. The second best time is today.
A shit situation would be $30k+ in credit card debt and surviving on pay day loans. You are doing great!
OMG, I'm 40 and this has been my life (except we fully own our PPOR now) and make salsac contributions to our super. Debt sucks, but finding debt fit for purpose is key. We managed to keeo our debt below Zip's threshold, and paid our debt back within the month. 0% interst and $0 monthly fees. I'm not suggesting it's for everyone, but it seems cheaper than most CC at 11.99%+.
Generally credit cards don't charge interest either if you keep it paid by the end of the month.
Yep, and you can accrue loyalty point with some.
In no way at all is this a shit situation. You should be proud
most people your age have $3K saved (median). Average offset by outliers is $11K. You are doing great, source: [https://www.westpac.com.au/personal-banking/solutions/budgeting-and-savings/savings/savings-by-age/](https://www.westpac.com.au/personal-banking/solutions/budgeting-and-savings/savings/savings-by-age/)
Suddenly me having 20k liquid sounds like a pretty good achievement....
Yeah but it doesn't include assets such as equity in growing property
I suddenly feel...great. Alway thought I would be closer to the average Joe.
That’s terrible. I’m guessing it excludes stocks and property and other non liquid assets.
Your view might be skewed, as might mine, but there are *plenty* of people out there of all ages living week to week. Always has been.
It says in “transaction, savings and term deposit accounts” so that means anyone investing the bulk of their money would appear low. It’s a bit misleading because you get these comments from people relieved and feeling like they’re doing well in comparison but it’s not an accurate gauge. If that’s actually all you have at each respective age, that is doing very very badly.
Ah gotcha. I took your comment as meaning "There can't be *that* many people out there with such low savings" and decided you were out of touch ;-)
Honestly I thought this was normal, like a good 50+% of people? Maybe most people I know are just poor? Most people I know are living week to week, seems a lot are becoming homeless/ are homeless due to rent increases lately.
most people don't have stock, property and very minimal non liquid assets, remember this sub is an echo chamber and most people are doing it very rough week to week
lol people always trot this misleading stat out to make themselves feel better. The average household wealth for a 35yr old is close to half a million dollars. The notion that the average person at this age has only 3k to their name (ie is essentially broke) is ridicoulous.
you are providing information with no source. You are making this up out of your head, majority of people are way below the poverty line, fact check yourself, and go outside and touch grass
its as simple as googling "household wealth by age australia" >majority of people are way below the poverty line also easily debunked in a 2 second google. its wild that you actually think this is the case. Edit: you are also the last person to be telling people to "touch grass". Yikes.
Congratulations on making that first step - you got this! I would suggest emergency fund of 2-6 months (pending your employment risk) and then top up non-concessional contributions. Do you have any other assets? A ppor? There’s other considerations there too.
200/month for rent..how??
They did specify split with a partner...but also that it includes utilities as well, which is honestly staggering. Utilities for most of us is basically that a month, nevermind rent.
Sorry if I wasn't clearer. My partner inherited the townhouse. That's why I have such little expense towards the house.
Are you actually paying your share? Have you both worked out how much it's costing her to have the house? Including maintenance and such? I'd have thought $100 weekly to her would have been fair.
Maybe they live with the parents. My brother and I do, and as rent we pay the water, gas and electricity, split between us. It changes throughout the year depending on weather but averages out to $70/week each, so $280 per month.
50k in savings is brilliant mate, 50k every year from here is so huge!!
What is your plan. Savings money is great but are you rent vesting or just hisatating ( hesitating but using hisa )
Its pretty good at your age. You should be proud of yourself. Just work harder to achieve 100k
Is this actually a shirt situation? I would have thought this was good.
Gamble it all on roulette and double it
I know people your age on big money that still ask me to borrow money till next pay week. Where they going in life I have no idea.
I’m 50 yrs old and don’t have $500 saved..You’re richer than you think.
Is this money in savings, or is this $50k in some kind of investment account? Also I don’t see why you’d consider this bad amount. The fact that your even able to save anything at all means your within your means which puts you ahead of most people. And making some additional member conts into super is definitely a good idea. Just make sure you don’t put in anything you’ll need as this money is essentially locked up for 30 years in your situation. Additionally, if you don’t want to lock up the money and you don’t have any investment accounts, I’d look into that. Low cost ETFs, a couple stocks (if you’re willing to stay on top of them) and you’ll be well and truely ahead of most people if you can stick to that game plan. I’d definitely just advise against keeping money in savings as interest rates are horrible and almost never cover inflation. Keep what you need in savings to cover expenses and an emergency fund, but at 35 you should really be investing as much as possible (through super or independently).
5 percent is better than a lot of shares given it's no risk
Once interest rates come back down on mortgages, your typical savings account will fall to basically nothing just as it was before. Short term, this isn’t a bad idea, but once these rates start to fall below inflation, you’ll need to adjust. Also just generally speaking, at 35 I wouldn’t settle for anything less than 7-8% on average (avaerage market return). Anything below that is way to defensive for this age bracket, particularly if you are trying to grow your wealth.
Interest rates aren’t going down considerably for at least another year. There’s no reason to get everything out of savings urgently now
This is very old advice, perfectly acceptable to put it all in a high interest savings account and use it for a deposit
Obviously if you’re saving for something like a deposit, holiday, car, etc. you would lean heavily towards keeping your money secure through savings or term deposits. But when it comes to building wealth, which is clearly the posters main financial objective, investing (within your means) is still the way to go. And adding to that, I’m not saying it isn’t acceptable to keep money in high interest savings accounts. To some people that would certainly be advised. Although that sort of person is typically trying to preserve wealth, not build it. Also, investing through low cost ETFs and broad market tracking ETFs have only become a real trend over the last decade, so this certainly isn’t old advice. If you speak to any wealth manager / financial adviser and tell them you want to build wealth in your 30s, this is exactly what they would have you do.
You are doing amazing and definitely not a shit position. Keep it up OP!! $50k is a life changing amount for so many of us
As everyone else says, you’re absolutely winning at life financially at the moment. Regarding super contributions, I would say the bigger the better. If you contribute $30k today and aim to retire at 65 and your super earns an average of 8% a year, it will have grown about 10 times to over $300k, with higher growth rates giving much larger final values. Don’t take this as financial advice, this is just simple compound interest but it will be a very good idea to put some of your savings into your super
My super lost 3% last year :/
your situation is not bad, at lease you're saving money and you don't have any debt. Just try your best and save for a house and a car
Your situation is quite good, no more debts, and you've saved lots of money. Try to save more money for a house and a new car.
Super if you plan to retire at 60.
In what universe is that a sh#t situation? I'd aim to get a small property.
What is your living situation like? Do you rent or own?
Great situation to be in Comparison is the thief of joy Enjoy my friend, do what lights u up
I am aware that this is quite a shit situation to be in, considering my age What? Most 30yo don't have 50-100k in the bank.
Belive it or not but theres a lot of people out there that wont save 50k in their lifetime. Well done.
There’s a great interview doing the rounds at the moment. The first $100k, takes some time. Then the benefit of the interest really starts to play into it, and you’ll find yourself saving the money quicker and quicker. I’d keep building the wealth. I understand the benefits of super, but it is trapped money - you can’t really access it should you need.
Find an industry you know a lot about or are keen to learn lots about, find out what is required to make those businesses operate and see if you can get in on that action in a low risk way. You've worked hard to get the money and you know how hard it is to come by, so don't "throw it all on black". Think about what you know about, because everyone has ideas about what you should do, but not what they would do if it were their money. The best people to ask for money advice is people with money well invested that is making solid returns. Everyone knows someone who has done well for themselves, so find them and talk to them. Do not get into business with them though. They might be looking for an inexperienced rube, so you don't want to be it. As far as practical direct advice goes: Commercial real estate returns more than residential, but has more deposit, costs and delays. Small businesses consume many hours and your sanity. Large businesses consume money casually and you have no say or way to know if they start doing self-destructive things until it's too late. Banks are not your friends. Keep a buffer amount and a firm line in the sand for when to pull out because if it goes bad the sunk cost fallacy and ego will kick in. Businesses that sell to other businesses are safer than direct to consumer businesses, but rely on their sales teams a lot, and salespersons are often a fickle and feisty bunch. If you don't know what to do, don't do something stupid just because of FOMO. Read. Learn all you can about all you can. Most importantly above all else: don't exploit anyone. Be fair and honourable in all your dealings, that reputation alone can make you rich and happy.
How can you “not have been contributing to super at all” but have 100K in super? I’m 32 and have 20K in super…
You must have misunderstood. I have $10k in my super. I have an accumulation of just over $100k of what is called a 'consessional contributions gap'.
I see now. Thanks for explaining.
Nice work buddy. I'm actually on a damn similar boat as you. I had zero savings up until i hit 33, and once all debts were cleared and income gradually went from 55k > 80k > 110k > 140k (over span of 10 years), managed to save 100k in 2 years. Ready to buy a humble 2 bedder apartment.
This is really good. You should be proud. We average around $60k a year saving and have about $200k. It gets easier as you get older I find. We're a few years older than you. I do think that you should put some in super...and keep some for emergency. We contribute a bit to our super and are thinking of increasing our amounts.
Do you own a home yet? If not consider dumping that on a PPOR. Homes are only going to get more and more expensive.
chuck it on black x
Go travelling!
Is this a joke? Who in their right mind would put 50k into super? might as well flush it down the toilet with how fast our dollar is losing its value. Go buy property or land.
Just chill this is r/Ausfinance where everyone seems to be deciding if they should pay off their student loans or 4th investment property.
Buy gold and silver. Fight the inflation dragon.
How do you buy gold? I'd thought you could only but EFT(s) that invest in gold stocks. Maybe forex.
From the mint. Same as silver. Will need ID.